thats bad news for amazon.com. :)
but seriously its more on a case by case basis. if you make money 3 years
out of 5 then thats good evidence you are a business (for horses its only 2
out of 5, ha!) however if you can argue and convince the tax court that you
have the intent and a reasonable plan to make a profit, you can definitely
lose money 5 years in a row and still be considered a business. they look
at a variety of things, how its run, whether you modeled it after other
businesses, etc.
i will have a little automotive related business this year, and will deduct
a small (and justifiable) amount of my autocrossing expenses.
-james
----- Original Message -----
From: "John F. Kelly Jr." <76067.1750@compuserve.com>
To: <ba-autox@autox.team.net>; <E911me@aol.com>
Sent: Friday, January 31, 2003 9:06 AM
Subject: Using a small business to help with autoxing/racing events?
> Any business that loses money for five years is considered by the IRS to
be
> a hobby.
>
> --John Kelly
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